Bespoke Wealth Management

Our Services

Pensions & Retirement Planning

Planning your Retirement

We create a year by year financial plan for our clients wishing to either accumulate wealth for retirement, or take income during retirement. This financial plan will be based on your future goals and your financial requirements at your chosen retirement age, and we also plot in various “what if” scenarios to help you collectively plan for life’s changing circumstances.

Once your financial plan is created, it is reviewed annually to check you are on track to meet your financial goals. Upon retirement, we will generally utilise one of, or a combination of the options below in order to help you achieve your perfect retirement.

Please note that if you draw any income from this plan, your future money purchase pension contributions will be limited to a £4,000 maximum Annual Allowance, as of the 2019/20 tax year.

Quick Guide

LIFETIME ANNUITY

  • Regular and secure income for life.
  • Tax free cash provided at outset and fund used to purchase an annuity paid for life.
  • Your annuity income is paid at least annually and can increase, decrease or remain level in payment.
  • Additional options can be selected at outset such as annual increases, spouse’s benefits or guarantees which reduce your own income.
  • Once you have bought your annuity, you usually cannot change your mind or change benefits. On death there may also be the option of a capital payment less tax.

SCHEME PENSION

  • Regular and secure income for life.
  • Tax free cash paid at outset and fund used to provide income for life.
  • Your scheme pension is paid at least annually and can increase or remain level in payment.
  • Additional options may be offered at outset such as annual increases, spouse’s benefits or guarantees which reduce your own income.
  • Pension income paid directly by scheme. Once in payment you cannot change your mind or change the benefits.

PHASED RETIREMENT

  • Part of your fund and part of your tax free cash are used in segments to provide annuity income.
  • The balance of the fund not used for income / tax free cash remains invested with the aim of providing higher future benefits.
  • Your starting annuity is smaller, but is supplemented by a portion of your tax-free cash sum.
  • Each year you decide how much fund to use for annuity purchase and how much tax free cash is used to supplement your income.
  • Because you don’t commit all your funds to buy an annuity immediately, you keep your options open.

EXISTING DRAWDOWN PENSION – CAPPED

  • Tax free cash lump sum paid at outset and fund remains invested. Income can also be selected if required.
  • The balance of the fund not used for income remains invested with with the aim of providing higher future benefits.
  • You can choose the income you want, and when you want it, between nil and 150% of an equivalent single life annuity.
  • If investments do well, you may benefit from higher future income payments, and vice versa.
  • On death, the remaining fund is available to pay benefits to your beneficiaries.

FLEXI-ACCESS DRAWDOWN

  • Tax free cash lump sum paid at outset and residual fund (subject to income tax) can be accessed immediately.
  • Immediate access to the entire fund to provide income with no limits. 25% Tax Free Cash the rest subject to income tax, at your highest marginal rate.
  • You can choose the income you want, and when you want it.
  • On death, if there is any fund remaining then it is available to pay benefits to your beneficiaries.
  • Policyholder must advise all other ‘active’ pension plan providers that they have flexibly accessed their benefits within 91 days, or face possible HMRC fines.

UFPLS

  • A lump sum is paid up to the full value of the plan. No regular income.
  • Immediate access to as much of the fund as required. Of the amount paid out, 25% is paid free of tax with the rest subject to income tax, at your highest marginal rate.
  • There is no regular income but you can choose when and how much of a lump sum you require.
  • As long some funds are left in the plan, if investments do well you may benefit from higher future lump sum payments.
  • Policyholder must advise all other ‘active’ pension plan providers that they have flexibly accessed their benefits within 91 days, or face possible HMRC fines.

Book a no obligation consultation today

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Income drawdown will reduce the size of your pension fund and the investment growth may not be sufficient to maintain the level of income you wish to draw. If you withdraw money at a rate greater than the growth achieved by your investments, your remaining fund will reduce in value. The level of income you take will need to be reviewed if the fund becomes too small – this is more likely the higher the level of income you take.

The income you receive may be lower than the amount you could receive from an annuity, depending on the performance of your investments.

As annuity rates can change substantially and rapidly, there is no guarantee that when you do purchase an annuity the rates will be favourable. This could mean that your pension thereafter may be less than you hoped for.

The rules governing how much income you can take directly from your pension fund may change. This could mean that the income you can take from the investment no longer meets your requirements.

Contact Us

Have a question?
Would you like a meeting?

0117 440 7869

  • Knightwood Court, Mead Road, Bristol, BS34 8PS

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